Valero to run refineries at 80% to 83% of capacity in Q4
VLO•Valero expects to run its refineries at 80% to 83% of capacity in Q4, produce 4.9 million gallons of ethanol per day and sell 325 million gallons of renewable diesel.
1. Q4 operating outlook
Valero said on a conference call that it expects refinery utilization of 80% to 83% in Q4, ethanol production of 4.9 million gallons per day and renewable diesel sales volumes of 325 million gallons. Executives said the company has no plans to restart idled refineries and expects a heavier refining-industry turnaround season next year.
2. Market and shareholder returns
A Valero executive said the Gulf Coast remains one of the most advantaged crude markets globally, rising freight costs further support that position, and the long-term outlook on crude differentials remains very constructive. The executive also said Valero is in a good position to be more aggressive with shareholder returns, especially if volatility returns, and sees no signs of demand destruction on the wholesale side.
